Kadokawa (9468) Q1 2026 earnings summary

Executive summary

• Net sales for the quarter ended June 30, 2025, were ¥64,844 million, down 1.5% year-over-year; operating profit dropped 61.5%, ordinary profit fell 69.5%, and net profit attributable to owners declined 17.2%.

• Comprehensive income decreased 34.8% year-over-year to ¥2,977 million.

• Disappearance of prior year cyberattack impact was offset by declines in Publication/IP Creation and Animation/Film, despite gains in Gaming, Web Services, and Education/EdTech.

• Foreign exchange losses and extraordinary losses from a cyberattack further reduced profits, but lower income taxes limited the net profit decline.

Financial highlights

• Net sales: ¥64,844 million (down ¥1,015 million year-over-year).

• Operating profit: ¥2,318 million (down ¥3,711 million, margin 3.6%).

• Ordinary profit: ¥2,349 million (down ¥5,349 million).

• Net profit attributable to owners: ¥2,858 million (down ¥595 million).

• EBITDA: ¥4,475 million (down 42.6% year-over-year).

Outlook and guidance

• Full-year forecasts remain unchanged for both consolidated and segment results.

• Full-year forecast: net sales ¥291,900 million (+5.0% YoY), operating profit ¥16,700 million (+0.3%), profit attributable to owners ¥11,400 million (+54.2%), and EBITDA ¥25,500 million (+2.4%).

• Animation segment expects increased titles and improved sales/profit from 2Q onward.

• Publication/IP Creation aims to meet initial forecasts with major media mix titles in 2Q and beyond.

• Gaming segment targets further ELDEN RING franchise expansion, including new releases.